The Bank of England lifted its asset purchase programme by GBP 50 billion in February through a split vote as two members called for larger stimulus, the minutes of the monetary policy meeting showed Wednesday.

According to the minutes, seven members including Governor Mervyn King voted to increase the size of quantitative easing by GBP 50 billion, while David Miles and Adam Posen sought GBP 75 billion increase.

A majority of policy makers observed that it was not clear that a stimulus larger than that was warranted at the current juncture. Moreover, a larger increase risked sending a signal that the Committee thought the economic situation was weaker than it was.

At the same time, the nine-member committee unanimously voted to retain the interest rate at a historic low of 0.50 percent. The meeting was held on February 8 and 9.

by RTT Staff Writer